It’s Tax Day, so I hope you filed your tax returns and will receive lots of your hard earned money back, rather than owing a significant amount or catching a dreaded audit from the IRS. While most of us that file taxes fall into the lesser tax brackets, NBA players find themselves at the top of the tax-paying food chain.
A multi-million dollar contract means that a great deal of your money goes back to the United States government (and the state, depending on where you live). This is something young NBA players have to learn quickly, as that $4 million per year looks an awful lot more like $2 million after everything is said and done, so they must budget accordingly.
While some young players may find themselves under-compensated for their contributions due to the rookie salary structure, there are plenty of veterans who make up for it on the cap sheet and in their tax filings by making far more than their on-court production would indicate they are worth. Now, as any good capitalist will tell you, there are no bad contracts because the free market dictates pay and therefore there can’t be a “bad” deal, but we know that’s not the case. Here are five of the worst contracts (or combinations of contracts) in the NBA.